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netjoy

05/06/11 8:38 AM

#71410 RE: beaunos #71409

A double edge sword is a good way to put it...

For illiquid stocks like IDGI and thousands other on the OTC, this new rule may allow companies and trade groups to more easily manipulate the pps because OTC L2 tends not to change as rapidly as on the AMEX or NASDAQ, giving these plenty of time to strategize.

For example, using this data, a company that wants to dilute can more easily identify the sweet spots of moneyflow. On the positive side, individual traders and pump groups may use the information to run a stock that is thinly traded. The ability, as you said, to identify real or fake walls on L2 will be very beneficial to everyone.